It is no secret home prices in Naples are up and new home permits are on the rise. Is this reason to worry...Is the hot market inflating into a giant bubble?
Financial experts don't think so. "The bounce-back in home prices during the early stages of the housing recover has been quicker than expected but that is not anything to be alarmed of, given that how deep and long the downturn was," said PNC's Florida economist Mekael Teshome. "Ultimately, the recovery does have a real basis.
A bubble occurs when prices are bid up to the point that they are unsustainable. The current situation is not likely t last forever, especially since permit levels are picking up, interest rates are on the rise and lower demand may turn down the heat in the near future. Historical "normal interest rates" are in the 8% range so anything sub 6% is still considered historically low.
For a current market analysis of your home or to learn more about the real estate market in Naples, FL please contact Kevin Aizenshtat at 239-777-1451
or by email at [email protected]